RBA plays chicken with the Feds: CRASH!

The RBA is playing a dangerous game. So is the government.
Won’t somebody think of the children?

Now, you’d have to think that today’s RBA board meeting is
live. There’s every chance we could see another rate cut. Nothing has changed
the view of most people in the market that rate cuts are heading lower.

We’re already at record lows. Soon, we’ll be at recorder
lows. People think we’ll soon get to from where we are now – 1.25%, to 0.5% – a
rate most people think is the floor.

(Our economy is too small to go to zero, apparently).

That’s the scenario that is currently priced into the markets:

But the RBA’s not happy about this. It doesn’t want to run
out of ammo. And it feels like it’s being backed into a corner